Patent application title: Novel Coin Exchange system and method

Abstract:

A method and a system of exchanging coins, comprising determining an
amount of coins to be dispensed in a sales transaction; transmitting the
amount to a card reader terminal; retrieving account identification data
from a card wherein the card stores account identification data;
transmitting the amount and the account identification data to a central
computer; redeeming, by an user at a later time, the amount less a fee in
an user's preferred method.

Claims:

1. A method of exchanging coins, comprising determining, by a cashier
machine, an amount of coins to be dispensed in a sales transaction,
wherein said cashier machine is positioned in a retail store;
transmitting, by said cashier machine, said amount to a card reader
terminal, wherein said card reader terminal is operably linked to said
cashier machine; retrieving, by said card reader, account identification
data from a card wherein said card stores account identification data;
transmitting, by said card reader terminal, said amount and said account
identification data to a central computer, wherein said central computer
is operated by a host, wherein said central computer is located remotely
from said retail store and wherein said card reader terminal is
communicately coupled to said central computer; redeeming, by an user at
a later time, said amount less a fee in an user's preferred method.

2. The method of claim 1, wherein in said card is a magnetic stripe card.

3. The method of claim 1, wherein in said card is a smart card.

4. The method of claim 3 wherein said card reader terminal retrieves
account identification data from said card using radio frequency
identification technology.

5. The method of claim 3 further comprising said card reader terminal
transmitting said amount to said card.

6. The method of claim 5 wherein said card reader terminal transmits
account to said amount to said card using radio frequency identification
technology.

8. The method of claim 1, wherein in said preferred method is retrieving,
by said user, said amount less a fee in currency from a bank.

9. The method of claim 1, wherein in said preferred method is redeeming,
by said user, said amount less a fee by exchanging for a product in a
store.

10. The method of claim 9, wherein in said store is an online store.

10. The method of claim 1, wherein in said preferred method is donating,
by said user, said amount less a fee to a charity.

11. The method of claim 1, wherein in said preferred method is making
purchases with, by said user, said amount less a fee from a point of sale
system.

12. The method of claim 1, wherein in said preferred method is depositing,
by said host, said amount less a fee to a bank account of user's choice.

13. A coin exchange system comprising: a central computer; a cashier
machine positioned in a retail store, wherein said retail store is
located remotely from said central computer; a card, wherein said card
stores account identification data; a card reader terminal operably
linked to said cashier machine and communicately linked to said central
computer, wherein said card reader terminal retrieves said personal
identification data and transmits said personal identification data to
said central computer, wherein said cashier machine determines an amount
of coins to be dispensed in a sales transaction and transmits said amount
to said card reader terminal, wherein said card reader terminal transmits
said amount to said central computer, wherein said central computer
stores said amount and said personal identification data, wherein an user
redeems said amount at a later time in an user's preferred method.

14. The system of claim 13, wherein in said card is a magnetic stripe
card.

15. The system of claim 13, wherein in said card is a smart card.

16. The system of claim 15 wherein said card reader terminal retrieves
account identification data from said card using radio frequency
identification technology.

17. The system of claim 15 further comprising said card reader terminal
transmitting said amount to said card.

18. The system of claim 17 wherein said card reader terminal transmits
account to said amount to said card using radio frequency identification
technology

19. The system of claim 13, wherein said preferred method is retrieving,
by said user, said amount less a fee in currency from a bank.

20. The system of claim 13, wherein in said preferred method is redeeming,
by said user, said amount less a fee by exchanging for a product in a
store.

21. The system, of claim 13, wherein in said store is an online store.

22. The system of claim 13, wherein in said preferred method is donating,
by said user, said amount less a fee to a charity.

23. The system of claim 13, wherein in said preferred method is making
purchases with, by said user, said amount less a fee from a point of sale
system.

24. The system of claim 13, wherein in said preferred method is
depositing, by said host, said amount less a fee to a bank account of
user's choice.

25. The system of claim 13, wherein said central computer is located at a
host.

Description:

CROSS REFERENCE TO RELATED APPLICATION

[0001]This application claims the benefit of priority under 35 U.S.C.
119(e) to the filing date of U.S. provisional patent application No.
61/029,540 entitled "Novel Coin Exchange System and Method" which was
filed Feb. 18, 2008, and is incorporated herein by reference.

FIELD OF THE INVENTION

[0002]The present invention relates generally to method and system of coin
exchange, and more specifically to a method and a system of coin exchange
whereby the coins are eliminated during sales transactions.

BACKGROUND OF THE INVENTION

[0003]Today, there are a variety of machines and methods that exchanges
coins. They typically dispense stamps, tickets, coupons, money orders,
and even conduct bank transaction.

[0004]One type of the machine disclosed in U.S. Pat. No. 5,039,848, issued
to Raymond Stoken, dispenses coupons in exchange for money. A display
area indicates the different coupons available as well as the specific
amount of money required to obtain each particular coupon. Money is
inserted into the machine via a coin slot. Control circuitry determines
which coupon has been selected, the amount of money required to purchase
this coupon, and if the correct amount of money has been inserted into
the coin slot. The control circuitry then causes the coupon dispenser to
dispense the requested coupon.

[0005]On the other hand, U.S. Pat. No. 5,021,967 to Lawrence Smith is a
money order dispensing machine. This machine is meant to be operated by a
system operator, not a customer, and therefore does not require the
capability to receive money. The machine prints money orders on a dot
matrix printer after receiving the necessary data inputs from the
operator.

[0006]These devices are deficient from the point of view of a consumer
with an arbitrary amount of coins, since they require the input of an
exact coin value.

[0007]Other machines which sort coins have also been patented. One such
machine, is shown in U.S. Pat. No. 4,995,848 which uses two methods to
sort coins, both methods based on the diameter of the coins. Another type
of machine shown in U.S. Pat. No. 4,059,122, issued to Yoshio Kinoshita,
counts the number of coins according to denomination after sorting the
coins.

[0008]These system and methods are intended for counting and sorting coins
and does not transfer the value from the medium of coins to a more
convenient form such as a paper form.

[0009]Yet another machine disclosed in U.S. Pat. No. 5,564,546 is capable
of receiving an arbitrary amount of coins which does not require
insertion of an exact minimum amount and which converts the value of the
coin from the inconvenient medium of coins to a more convenient paper
medium. Despite the improvement of this machine over the previous
machines, the coin exchange system still involves the inconvenience of
paper medium.

[0010]Thus, it would be advantageous to provide a system and method
capable of receiving an arbitrary amount of coins, which does not require
insertion of an exact minimum amount, which completely eliminates the
need to use paper medium, and which converts the value of the coin from
the inconvenient medium of coins to a more convenient medium of a card
with magnetic stripe or a card with IC chip where the system is managed
by a remote host.

OBJECT OF THE INVENTION

[0011]It is an object of the invention to provide a system and method that
would eliminate the majority of the needs to circulate coins, whereby
hundreds and thousands of tons of raw metal materials can be reallocated
for different purposes, saving precious earth resources and reduce
unnecessary social costs.

[0012]It is an object of this invention to provide a coin exchange system
and method capable of receiving an arbitrary amount of coins.

[0013]It is an object of this invention to provide a coin exchange system
and method which does not require insertion of an exact minimum amount.

[0014]It is an object of this invention to provide a coin exchange system
and method which completely eliminates the need to use paper medium.

[0015]It is an object of this invention to provide a coin exchange system
and method which converts the value of the coin from the inconvenient
medium of coins to a more convenient medium of a card with magnetic
stripe or a card with IC chip where the system is managed by a remote
host.

[0016]It is an additional object to provide a coin exchange system and
method that works with existing cashier machines.

SUMMARY OF INVENTION

[0017]The present invention discloses a method of exchanging coins,
comprising determining, by a cashier machine, an amount of coins to be
dispensed in a sales transaction, wherein the cashier machine is
positioned in a retail store; transmitting, by the cashier machine, the
amount to a card reader terminal, wherein the card reader terminal is
operably linked to the cashier machine; retrieving, by the card reader,
account identification data from a card wherein the card stores account
identification data; transmitting, by the card reader terminal, the
amount and the account identification data to a central computer, wherein
the central computer is operated by a host, wherein the central computer
is located remotely from the retail store and wherein the card reader
terminal is communicately coupled to the central computer; redeeming, by
an user at a later time, the amount less a fee in an user's preferred
method.

[0018]In one embodiment, the card is a magnetic stripe card. In another
embodiment, the card is a smart card. In yet another embodiment, the card
reader terminal retrieves account identification data from the card using
radio frequency identification technology. Where the card is a smart
card, the card reader terminal is also capable of transmitting the amount
to the card. In yet another embodiment, the card reader terminal
transmits account to the amount to the card using radio frequency
identification technology. In yet one embodiment, the card reader
terminal transmits the account identification data to a central computer
intermittently.

[0019]In one aspect, the user retrieves the amount less a fee in currency
from a bank. In another aspect, the user redeems the amount less a fee by
exchanging for a product in a store. In anther aspect, the store is an
online store.

[0020]In yet another aspect, the preferred method is donating, by the
user, the amount less a fee to a charity. In another aspect, the
preferred method is making purchases with, by the user, the amount less a
fee from a point of sale system. In yet one other aspect, the preferred
method is depositing, by the host, the amount less a fee to a bank
account of user's choice.

[0021]In another embodiment, a coin exchange system comprising: a central
computer; a cashier machine positioned in a retail store, wherein the
retail store is located remotely from the central computer; a card,
wherein the card stores account identification data; a card reader
terminal operably linked to the cashier machine and communicately linked
to the central computer, wherein the card reader terminal retrieves the
personal identification data and transmits the personal identification
data to the central computer, wherein the cashier machine determines an
amount of coins to be dispensed in a sales transaction and transmits the
amount to the card reader terminal, wherein the card reader terminal
transmits the amount to the central computer, wherein the central
computer stores the amount and the personal identification data, wherein
an user redeems the amount at a later time in an user's preferred method.

[0022]In one aspect, the card is a magnetic stripe card. In another
aspect, the card is a smart card. Where the card is a smart card, the
card reader terminal retrieves account identification data from the card
using radio frequency identification technology.

[0023]In yet another embodiment, the card reader terminal is able to
transmit the amount to the card. In yet another embodiment, the card
reader terminal transmits account to the amount to the card using radio
frequency identification technology. In one aspect, the preferred method
is retrieving, by the user, the amount less a fee in currency from a
bank. In another aspect, the preferred method is redeeming, by the user,
the amount less a fee by exchanging for a product in a store. In yet
another aspect, the store is an online store. In yet another aspect, the
preferred method is donating, by the user, the amount less a fee to a
charity. In yet another aspect, the preferred method is making purchases
with, by the user, the amount less a fee from a point of sale system. In
yet another aspect, the preferred method is depositing, by the host, the
amount less a fee to a bank account of user's choice. In yet another
aspect, the central computer is located at a host.

BRIEF DESCRIPTION OF THE DRAWING

[0024]FIG. 1 is a system diagram of an embodiment of the coin exchange
system in a typical environment where the card contains magnetic stripe.

[0025]FIG. 2 is a flow chart of how an embodiment of the coin exchange
system functions where the card contains magnetic stripe.

[0026]FIG. 3 is a system diagram of an embodiment of the coin exchange
system in a typical environment where the card is a smart card.

[0027]FIG. 4. is a flow chart of how an embodiment of the coin exchange
system functions where the card is a smart card.

[0028]FIG. 5 is a system diagram of an embodiment of the coin exchange
system in a typical environment where the card is a smart card and where
the POS, the kiosk, and the card reader terminal are not linked to the
host and the central computer for every transaction.

[0029]FIG. 6 is a flow chart of how an embodiment of the coin exchange
system functions where the card is a smart card and where the POS, the
kiosk, and the card reader terminal are not linked to the host and the
central computer for every transaction.

DETAIL DESCRIPTION OF THE INVENTION

[0030]Reference is now made to FIG. 1, which illustrates a coin exchange
system comprising a card, a user, a cashier machine, a card reader
terminal, a central computer and a host. In FIG. 1, the diagram discloses
a typical embodiment on the present invention. In this depiction, the
user enters a retail store 2 and makes a typical sales transaction 3. The
retail store 2 can be a supermarket, a post office, a shop in the mall or
any store that engages retail transactions. Where the user uses cash to
make the purchases, it is inevitable that changes in coins will be
provided. As the cashier machine 4 makes a determination of the amount of
changes in coins 5 to give to the user, the machine is operably coupled
to the card reader terminal 6 and transmits the value of the amount of
coins 5 to be given, instead of dispensing the coins, to the card reader
terminal 6. Then the user swipes the card with magnetic stripe 7 through
the card reader terminal 6 and the card reader terminal 6 then retrieves
account information 8 from the card 7. Typical account information 8
would be the account number, name of the account holder, and the likes.
The card reader terminal 6 then transmits the account information 8 and
the value of the amount of coins 5 to be credited to the account to the
central computer 9 where the central computer 9 then stores the
information. Each time the user enters a sales transaction 3, the value
of the amount of coins 5 to be credited are transmitted from the card
reader 6 to the central computer 9 and the central computer 9 keeps a
tabulation of the total value of amount of coins in connection to each
individual account. The central computer 9 is operated by a host 10 and
at the choice of the users 1, the host 10 disburses the amount 5 less a
fee to a bank account 12 of the choice by the user, to a charity 11 of
the choice by the user.

[0031]The host then collects the original amount 5 from the retail stores
2. In one embodiment, the card reader terminal 6 of the present invention
is able to work with today's cashier machine in supermarket that works
with coin dispenser. The card reader terminal 6 directly replaces the
coin dispenser and coupled to the cashier machine 4.

[0032]FIG. 2 depicts a flow chart of how an embodiment of present
invention functions. An user 101 first opens an account 107 with the host
and then the user 101 is issued a card with magnetic stripe 108. The
magnetic stripe card 108 contains the account information that associates
the user with the account. The user 101 enters a retail store 102 and
makes a sales transaction 103. Based on the sales price and the amount of
cash tendered, the cashier machine 104 makes a determination of the
amount of coins to be dispensed. The cashier machine 104 then transmits
the amount of coins 105 to be dispensed to the card reader terminal 106.
Then the user 101 swipes the magnetic stripe card 108 through the card
reader 106 and the card reader 106 then retrieves the account
identification data 109 from the card. With the account identification
data 109 and the value of the amount of coins 105 to be credited to the
account, the card reader terminal 106 then transmits the data 109 and the
value of the amount to be credited 105 to a central computer 111.
Typically the central computer 111 is located remotely from the retail
store 102 and the card reader terminal 106 is communicately coupled to
the central computer 111, preferably over the internet network. The
central computer 111 stores the data associated with the personal ID 109
and the value of the amount of coins to be credited 105. Each time a new
sales transaction occurs 103, the process is repeated and a new value of
the amount of coins to be credited 105 is added to the user's account.
The central computer 111 is managed by a host 112. Depending of the
user's 101 preferred method, the host can allow the user to redeem the
money in the account in a bank withdraw 113. Similarly, the user 101 can
ask the host 112 to transfer the money in the account to a charity 114.
Likewise, the user 101 can use the money to make purchases from a store
115 or more preferably an online store. Further, the user 101 can redeem
the money by making purchases from a point of sales of system 116.
Likewise, the user 101 can have the host 112 to transfer the money to a
bank account 117 of user's preference.

[0033]Now referring to FIG. 3, this diagram depicts an embodiment of coin
exchange system where the card now is a smart card. A smart card, or
integrated circuit card (ICC), is defined as any pocket-sized card with
embedded integrated circuits which can process information. This implies
that it can receive input which is processed--by way of the ICC
applications--and delivered as an output.

[0034]Specifically, FIG. 3 illustrates a coin exchange system comprising a
smart card 14, a user 1, a cashier machine 4, a card reader terminal 6, a
central computer 9 and a host 10. In FIG. 3, the diagram discloses a
typical embodiment on the present invention. In this depiction, the user
1 enters a retail store 2 and makes a typical sales transaction 3. The
retail 2 store can be a supermarket, a post office, a shop in the mall or
any stores that engages retail transactions. Where the user 1 uses cash
to make the purchases, changes in coins is resulted. The cashier machine
4, which is operably coupled to the card reader terminal 6, makes a
determination of the amount of changes in coins to be dispensed 5 and
transmits the value of the amount 5, instead of dispensing the coins, to
the card reader terminal 6. Then the user 1 can enter the smart card 14
into the card reader terminal 6 and the card reader terminal 6 is then
able to retrieve account information 8 from the card 14. In a preferred
method, the card is a contact less smart card. A smart card, or
integrated circuit card (ICC), is defined as any pocket-sized card with
embedded integrated circuits which can process information. This implies
that it can receive input which is processed--by way of the ICC
applications--and delivered as an output. In this embodiment, the card
reader 6 can retrieve the account data 8 without the need to contact the
smart card 14. As for the data 8, the typical account information would
be the account number, name of the account holder, and the likes. The
card reader terminal 6 then transmits the account information 8 and the
value of amount of coins 5 to be credited to the central computer 9 where
the central computer 9 stores the information. The card reader terminal 6
then transmits the value of the amount to be credited 5 to the smart card
14 where the smart card 14 is able to store the total value of the amount
of coins to be credited.

[0035]Each time the user enters a sales transaction 3, the value of the
amounts of coins 5 to be credited are transmitted from the card reader 6
to the central computer 9 and the central computer 9 credits the value to
the account holder. Likewise, where each time an user 1 enters a sales
transaction 3, the value of the amounts of coins to be credited 5 are
transmitted from the card reader terminal 6 to the smart card 14 and the
smart card 14 stores the total value of the amount of coins 5 to be
credited in the card. The central computer 9 is operated by a host 10 and
at the choice of the user 1, the host 10 disburses the amount less a fee
to a bank account 12 of the choice by the user, or to a charity 11 of the
choice by the user. The host then collects the amount credited to the
user from the retail store.

[0036]FIG. 4 depicts a flow chart of how the embodiment of FIG. 3
functions. An user 101 opens an account 107 with the host and the user
118 is issued a smart card. The smart card 118 contains the account
information 109 that associates the user 101 with the account. The user
101 enters a retail store 102 and makes a sales transaction 103. With the
sales occurring, the cashier machine 104 makes a determination of the
amount of coins to be dispensed based on the sales price and the amount
of cash tendered. The cashier machine 104 then transmits the amount of
coins 105 to be dispensed to the card reader terminal 106. Then the user
101 enters the smart card 118 to the card reader 106 and the card reader
106 then retrieves the account identification data 109 from the card 118.
Where the smart card 118 is a contact less smart card, the user 101
waives the smart card 118 through the card reader terminal 106 and the
card reader is able to pick up the data 109 from the smart card 118. With
the account identification data 109 and the value of the amount of coins
to be credited to the account 105, the card reader terminal 106 then
transmits the personal data 109 and the value 105 to a central computer
111. Further, the card reader terminal 106 then transmits the value of
the amount to be credited back to the smart card 118. In this embodiment,
the smart card 118 also stores the value of amount of credited coins 105
associated with its account. Typically the central computer 111 is
located remotely from the retail store 102 and the card reader terminal
106 is communicately coupled to the central computer 111, preferably over
the internet network. The central computer 111 stores the data 109
associated with the personal ID and the value of the amount of coins to
be credited 105. Each time a new sales transaction 103 occurs, the
process is repeated and a new value is added to the user's account. The
addition of money in the account is stored both by the central computer
111 and the smart card 118. The central computer 111 is managed by a host
112. Depending of the user's preferred method, the host 112 allows the
user 101 to redeem the money in the account in a bank withdraw 113.
Similarly, the user 101 can ask the host 112 to transfer the money in the
account to a charity 114. Likewise, the user 101 can use the money to
make purchases from a store 115 or more preferably an online store.
Further, the user 101 can redeem the money by making purchases from a
point of sales of system 116. Likewise, the user 101 can have the host
112 to transfer the money to a bank account 117 of user's preference.

[0037]Now referring to FIG. 5, this diagram depicts an embodiment of coin
exchange system where the card now is a smart card. This is largely
similar to the embodiment of FIG. 3 except that the card reader terminal
6 does not transmit account information 8 and the value of the amount of
coins to be credited 5 to the central computer 9 each time a sales occurs
3. Rather, the information is transmitted to the central computer 9
intermittently. The intermittent period can be weekly or monthly. In this
embodiment, the smart card 15 keeps track of the value of the amount of
coins to be credit 5 to the account. The user 1 can retrieve money from a
kiosk 16 or redeem the credit by making purchases from the POS (Point of
sales system) 13. The POS 13 or kiosk 16 then reports the transactions
back to the host 10. This embodiment is ideal if the card reader terminal
6 is not communicately linked to the central computer 9 on constant
basis.

[0038]FIG. 6 depicts a flow chart of how the embodiment of FIG. 5
functions. It is similar to the flow char of FIG. 4 except that the
information 110 is transmitted to the central computer 111 on
intermittently basis 119. In this embodiment, the smart card user 101
retrieves money from the kiosk 120 or redeems the credit by making
purchasing from the POS 116.